Mumbai, Nov. 3 -- The rupee settled 9 paise higher at 94.75 against the US dollar on Tuesday, supported by inflow of foreign funds amid massive buying in domestic equity markets.
However, a recovery in crucial oil prices due to geopolitical uncertainties capped gains in the Indian currency, according to forex traders.
At the interbank foreign exchange market, the rupee opened at 94.68 and touched the day's high of 94.60 against the greenback.
The unit pared some gains before settling 9 paise higher at 94.75 against the US dollar.
The Indian currency fell 8 paise to close at 94.84 against the dollar on Monday, after appreciating 50 paise in the preceding session on Friday.
Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan, said the rupee gained on a surge in domestic markets and a soft dollar.
However, a recovery in crude oil prices capped sharp gains.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 101.69, higher by
0.07 per cent.
Published by HT Digital Content Services with permission from Millennium Post.